Corporate Governance

Specialty menswear retailer swings to profit in Q2
Destination XL Group Inc. reported a profit in its second quarter amid the ongoing strength of its DXL larger store format. The retailer of big and tall apparel for men posted net income for the second quarter of $0.2 million, compared with a net loss of $1.0 million in the year ago period.
New finance chief for Michaels
The Michaels Companies, named Denise Paulonis as executive VP – CFO, effective Aug. 29. The appointment is part of the retailer’s previously announced CFO succession plan. Paulonis, currently senior VP – finance, succeeds Chuck Sonsteby, vice chairman and CFO. He will continue to serve as vice chairman and will retain executive responsibility for the growth and integration of Lamrite West and the management of Aaron Brothers stores.

West Elm in two new store openings

West Elm doesn’t believe in cookie-cutter stores. The home furnishings retailer will open its location in the state of Rhode Island, in Providence’s Wayland Square neighborhood on Sept. 1. The 11,473-sq.-ft. store will incorporate unique design elements that pay homage to Rhode Island’s history and coastal proximity.
Sears’ losses mount in Q2; accepts loan from Eddie Lampert

Sears Holdings Corp. swung to a loss amid declining sales in the second quarter, and chairman and CEO Eddie Lampert stepped in with more financing for his embattled company. Sears said it had accepted a $300 million debt-financing offer from Lampert’s hedge fund, ESL Investments Inc. The loan is secured by a junior lien against Sears's inventory, receivables and other working capital.
Dollar Tree Q2 sales disappoint

A little over one year since it acquired rival Family Dollar, Dollar Tree reported revenue that missed Wall Street expectations amid lower customer traffic. Dollar Tree and other discounters are also feeling the impact of a recent change by some states regarding the criteria for the Supplemental Nutrition Assistance Program (SNAP), which has made thousands of households ineligible for benefits.
Five Below’s store count to reach big number

Five Below continues its rapid expansion. The extreme-value retailer will open its 500th store in Trexlertown, Pennsylvania, on Sept. 9.
Dollar General Q2 sales fall short

Dollar General Corp. reported lower-than-expected revenue for the second quarter amid increasing competition and reduced food stamp coverage. The company’s net income was $306.52 million, or $1.08 per share, in the quarter, compared to net income of $282.35 million, or $0.95 per share, in the year-ago period. Net sales increased 5.8% to $5.39 billion, compared to $5.10 billion last year.
What’s happening in Vegas is staying downtown

Detroit is not the only town that spent the past few decades building outward before looking inward. In June, the Las Vegas City Council approved a master plan for its Downtown district, focusing on both historic attractions and new development to drive more traffic there.

To make it happen, it hired RTKL, an architecture and urban design firm whose completed projects include Mirdif City Centre in Dubai and L.A. Live. Its plan calls for the establishment of a tech business center, expansion of its health care services and at least 5,000 new residents.
In the cool, cool, cool of the city

More and more these days, shopping center developers find themselves in the role of town planner. Once dedicated to creating pleasant spaces for people to shop in, they now are challenged to create places for people to live, play, eat and be entertained in. Build that, they’re told, and shoppers will come. But droves of millennials fleeing suburbs in search of more fulfilling urban lifestyles are giving developers an assist. In some cases, they’re hewing their own downtowns out of rough old sections of town. In others, old downtowns are remaking themselves to welcome this new city stock.
ON THE LEVEL

My face and name may be unfamiliar to you, but hopefully that will soon change. I have covered retail for decades, never retail real estate. But, I am happy to have landed in this spot. For, just as retailers need new traffic to thrive and grow, so do writers need new material, and this beat is rife with material.

Here’s what excites me about this space. It’s something I trust also excites — and perhaps scares — you retailers and developers out there. You are America’s new town planners.
Not enough of a good thing

With few new grocery centers being built, developers are upping the ante on existing ones

Pat Donahue, together with his late brother Dan and business partner Tom Schriber, has been in grocery-anchored shopping centers since the ’90s. That’s when Schriber calculated that the company’s long-term fortunes, which had rested on mall development up until then, would be better wagered on high-traffic “necessity-based” retail.

“At malls you get ’em three times a month.
STORE BARRICADES WITH CURB AND BRAND APPEAL

High-quality, graphically interesting store barricades can turn an unsightly construction or remodeling site into a brand-enhancing billboard for a retailer. Chain Store Age spoke with Bob Putnam, the president and founder of Boston Barricade Company, about the evolving nature of retail construction barricades.

How have retail construction barricades changed over the years?

Thirty years ago, 98% of all retail barricades were constructed using metal framing and drywall. But today, that number is down to 35%.